Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):ProductABSelling priceVariable expenses:Direct materialsOther variable expensesTotal variable expenses$84.00$66.00$74.0025.2018.009.0025.2031.5042.8050.4049.5051.80Contribution margin$33.60$16.50$22.20Contribution margin ratio40%25%30%The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. Thematerial costs $3 per pound with a maximum of 5,700 pounds available each month.Required:1. Calculate the contribution margin per pound of the constraining resource for each product.2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds ofmaterials?Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimalplaces.)Product AProduct BProduct CContribution margin per pound of the constraining resource< Required 1Required 2 > Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):ProductAB$84.00$66.00$74.00Selling priceVariable expenses:Direct materialsOther variable expensesTotal variable expenses25.2018.009.0025.2031.5042.8050.4049.5051.80Contribution margin$33.60$16.50$22.20Contribution margin ratio40%25%30%The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. Thematerial costs $3 per pound with a maximum of 5,700 pounds available each month.Required:1. Calculate the contribution margin per pound of the constraining resource for each product.2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds ofmaterials?Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 poundsof materials? (Round your intermediate calculations to 2 decimal places.)Maximum contribution margin< Required 2Required 3 >

The contribution margin or contribution per unit is determined by subtracting the variable expenses…

Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product А B $84.00 $66.00 $74.00 Selling price Variable expenses: Direct materials 25.20 18.00 9.00 Other variable expenses Total variable expenses 25.20 31.50 42.80 50.40 49.50 51.80 $33.60 $16.50 $22.20 Contribution margin Contribution margin ratio 40% 25% 30% The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,700 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds of materials?

Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product А B $84.00 $66.00 $74.00 Selling price Variable expenses: Direct materials 25.20 18.00 9.00 Other variable expenses Total variable expenses 25.20 31.50 42.80 50.40 49.50 51.80 $33.60 $16.50 $22.20 Contribution margin Contribution margin ratio 40% 25% 30% The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,700 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds of materials?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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